Bank vs Apple – Apple Wins

The ACCC, in a landmark decision, has refused the request of a group of major banks to collectively bargain with Apple for access to it’s ApplePay technology. This is important, not only because it prioritises the creator of the technology over those who wish to use it, but also because it removes the right of banks to collectively boycott ApplePay technology in order to push their own agenda.
Commonwealth Bank, National Australia Bank, Westpac, Bendigo Bank and Adelaide Bank argued that Apple, through only allowing certain partners to use ApplePay, is exercising a high degree of control over consumer habits, which the banks evidently felt was restrictive to competition. In Apple’s response, they cited security issues as being the main reason for limited partnerships, saying that allowing any institution to access its Apple Wallet technology, would put the entire Apple ecosystem at risk.
Interestingly, the banks involved were not saying that Apple should add them to the list of partners, rather, they wanted access to Apple’s NFC (Near Field Communication) technology in order to use it as part of their own product line. While, to banking outsiders it may seem bizarre that organisations would attempt to take another businesses technology, and create a virtual free for all, with the creator being forced to negotiate with everyone, the banking world has run in this fashion for years.
Technology advancements in banking, are traditionally developed and distributed by third parties who do their best to sell it to every organisation in the small but influential banking community. Examples of this include EFTPOS, online banking, and Bpay technologies. However, through creating a product that has controls in place for those who can and can’t access it, Apple has changed the way things work, which has made many banking insiders uncomfortable.
Banking and technology are often reluctant bedfellows, and as more players into the market, it’s likely that banking institutions will choose litigation over the acceptance of corporate policy.
In the meantime, ApplePay will be left to its own devices, and the major banks will have to do deal with the tech giant in order to be part of one of the most influential financially based ecosystems the world has ever seen.